Average second-hand three-bed house rose by 18 per cent over the past year

Two surveys published this week have shown how property prices in the county have continued to increase at pace over the past 12 months.

According to a national survey by Real Estate Alliance, the sale price of the average second-hand three-bed semi in Meath rose by 18 per cent over the past year to €293,750. This is a rise of four per cent compared to the last quarter of 2021.

Separately, the latest report from property website Daft.ie, showed that average asking prices for houses in the county over the past year rose by 7.8 per cent to €309,194. In terms of house types, the largest increase in asking prices in Meath was for three-bedroom semi-detached houses which rose by 11.3 per cent in the year.

Meanwhile the REA survey has shown that 67 per cent of sales in the county are to first-time buyers, with 35 per cent of all purchasers coming from outside the area.

Across the county, the average time taken to sell is four weeks, the Q1 REA Average House Price Index has shown.

Prices in Ashbourne rose by €30,000 to €375,000 compared to the previous quarter, an increase of 8.7 per cent, with 57 per cent of sales to first-time buyers and 43 per cent of buyers from outside the county.

“The year started on a positive note with a flurry of new properties to market, but slowly, yet again, we see a lack of stock and the pent-up demand continues to drive values upwards,” said Paul Grimes of REA Grimes, Ashbourne.

Prices in Trim remained unchanged this quarter at €285,000, with 80 per cent of sales to first-time buyers and buyers from outside the county accounting for 20 per cent of total sales.

“The market seems to have slowed down and there is still low supply of stock, but there are currently not as many buyers looking as we have seen over the past year,” said Thomas Potterton of REA TE Potterton, Trim.

Navan prices rose by €5,000 to €275,000, representing an increase of 1.9 per cent in the quarter. First-time buyers represented 80 per cent of sales in the area, with 25 per cent of buyers coming from outside the county.

The market in Kells saw a 4.4 per cent increase to €240,000 in the first quarter of 2022, with 50 per cent of sales to first-time buyers, and purchasers from outside the county also sitting at 50 per cent of total sales.

“We are seeing an increasing issue with supply and demand: with no new homes in Kells the demand for second hand properties is very high,” said Cara Gavigan of REA T&J Gavigan, Kells.

The annual increase in Meath of 18 per cent is above the national average increase of 14.3 per cent but behind the average rise in commuter counties which is 21.1 per cent.

The average Meath three bed semi price in March 2021 was €248,750, compared to the current price of €293,750.

The REA Average House Price Survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi.

Nationally, house prices are increasing at an average of almost €100 a day as the market shows no signs of slowing up in the early months of 2022, the survey has found.

Average house prices rose by 3.16 per cent nationally in the first three months of the year, matching the one per cent a month increases experienced during the Celtic Tiger days.

The average three bed in Dublin is fast approaching the €500,000 mark, with actual selling prices rising by 2.2 per cent since the new year, to an average of €481,250.

Commuter counties saw prices increase 4.47 per cent – a jump of €13,000 to €305,000 – and double the rate of increase seen in the capital.

In the rest of the country, where prices rose 3.4 per cent to €196,569, the survey found that one in every three buyers were from outside the county as new working conditions enable a rethink on home bases.

Also out this week was the Daft.ie house price report which found that nationally house prices rose by 2.4 per cent on average during the first quarter of 2022.

In Meath, prices in the first three months of 2022 were eight per cent higher than a year previously, compared to a rise of seven per cent seen a year ago. The average price of a home is now €309,000, 106 per cent above its lowest point.

The report found that during the first quarter of 2022, the asking price for a one-bedroom apartment was €121,000; two-bedroom terrace, €162,000; three-bedroom semi-detached €223,000; four bedroom bungalow €421,000; five bedroom detached €447,000.

Meanwhile, commenting on the Daft.ie House Price Report for Q1 2022 IPAV, the Institute of Professional Auctioneers & Valuers, said there is a worrying lack of properties for sale and the factors impacting supply would seem to be getting worse rather than better.

Pat Davitt, IPAV Chief Executive said: “The lack of supply may not be as severe as the 10,047 homes available to buy on 1st March indicated in this report, since most auctioneers now have a pipeline of buyers already on their books. This means they can sell properties without the need for such online marketing.

“Nonetheless, it’s important to acknowledge that lack of supply is a major issue,” he said.

And he said the warning at the weekend from the building industry about the escalating costs of construction leading to the unviability of some building projects was “disquieting”.

He said there is a myriad of factors impacting supply, some old such as the difficulty for SME builder/developers accessing finance and some new, such as the escalating costs of construction.

“Then we have conundrums such as the current mortgage rules, which require that second and subsequent buyers have a 20 per cent deposit as opposed to 10 per cent for first-time buyers.

“This is a huge hurdle preventing many who bought in the years prior to the financial crash from moving on to more suitable homes to meet their needs, and for which they could service a mortgage sustainably, were it not for the 20 per cent deposit requirement. "